Industry Observations June 30, Containers, Packaging and Paper Products Industries

Transcription

1 Industry Observations June 30, 2018 Containers, Packaging and Paper Products Industries

2 Select Packaging, Container and Paper Products Public Company Industry Data (USD in millions, except per share data) Company Name Ticker Price at 06/30/18 Stock Price Date Stock Price 52 Wk High Stock Price 52 Wk Low Market Data LTM Operating Data Forward Estimates % of 52 Week High Equity Value Enterprise Value Debt / Total Capital Total Assets LTM Revenue LTM CY 2018 Revenue Estimate CY 2018 Estimate Plastic, Metal and Glass Containers AptarGroup, Inc. ATR $93.38 $43, $96.39 $ % $5, $6, % $3, $2, $ $2, $ Ball Corporation BLL $35.55 $43, $43.24 $ % $12, $20, % $17, $11, $1, $11, $1, Berry Global Group, Inc. BERY $45.94 $43, $61.71 $ % $6, $12, % $9, $7, $1, $7, $1, Crown Holdings, Inc. CCK $44.76 $43, $62.27 $ % $6, $12, % $13, $8, $1, $11, $1, Greif, Inc. GEF $52.89 $43, $65.60 $ % $2, $3, % $3, $3, $ $4, $ Myers Industries, Inc. MYE $19.20 $43, $24.60 $ % $ $ % $ $ $59.60 $ $70.73 Newell Brands Inc. NWL $25.79 $43, $54.19 $ % $12, $24, % $33, $14, $1, $14, $2, Owens-Illinois, Inc. OI $16.81 $43, $25.90 $ % $2, $8, % $10, $6, $ $7, $1, Silgan Holdings Inc. SLGN $26.83 $43, $32.43 $ % $2, $5, % $4, $4, $ $4, $ Tupperware Brands Corporation TUP $41.24 $43, $71.23 $ % $2, $2, % $1, $2, $ $2, $ Paper Packaging Bemis Company, Inc. BMS $42.21 $43, $49.84 $ % $3, $5, % $3, $4, $ $4, $ Graphic Packaging Holding Company GPK $14.51 $43, $16.74 $ % $4, $8, % $7, $4, $ $6, $1, Packaging Corporation of America PKG $ $43, $ $ % $10, $13, % $6, $6, $1, $6, $1, Sealed Air Corporation SEE $42.45 $43, $49.94 $ % $6, $9, % $5, $4, $ $4, $ Sonoco Products Company SON $52.50 $43, $55.77 $ % $5, $6, % $4, $5, $ $5, $ UFP Technologies, Inc. UFPT $30.85 $43, $34.00 $ % $ $ % $ $ $18.11 $ $0.00 Paper Products P. H. Glatfelter Company GLT $19.59 $43, $23.85 $ % $ $1, % $1, $1, $ $1, $ Clearwater Paper Corporation CLW $23.10 $43, $50.60 $ % $ $1, % $1, $1, $ $1, $ Schweitzer-Mauduit International, Inc. SWM $43.72 $43, $48.06 $ % $1, $1, % $1, $1, $ $1, $ Notes: LTM (latest twelve months); Enterprise Value (market capitalization less total cash and short-term investments plus short-term borrowings and total long-term debt); (earnings before interest, taxes, depreciation and amortization) Source: Capital IQ The material contained in this publication is meant to provide general information regarding valuation topics. This publication does not constitute investment advice with respect to the securities of any company discussed herein, is not intended to provide information upon which to base an investment decision, and should not be construed as such. Professional advice should be obtained before taking any action based on the information contained herein. Publicly available information utilized in this publication has been obtained from sources deemed to be reliable. Houlihan does not guarantee the accuracy or completeness of the information provided within this publication. The material presented reflects information known to the authors at the time this publication was written and this information is subject to change. Houlihan Capital 2

3 Select Containers, Packaging and Paper Products Public Company Valuation Metrics (USD in millions, except per share data) Company Name Ticker Return On Assets Return On Equity LTM Operating Statistics Return On Revenue Capital Growth Growth Margin TEV/ LTM Revenue Trading Multiples TEV/ TEV/ CY 2018 LTM Revenue TEV/ CY 2018 Plastic, Metal and Glass Containers AptarGroup, Inc. ATR 7.3% 17.2% 9.1% 9.4% 4.7% 19.4% 2.5x 2.4x 13.1x 12.1x Ball Corporation BLL 4.0% 11.1% 5.9% 15.5% 25.5% 16.2% 1.8x 1.7x 11.1x 10.7x Berry Global Group, Inc. BERY 5.7% 46.8% 7.1% 14.6% 13.4% 17.7% 1.6x 1.5x 9.0x 8.3x Crown Holdings, Inc. CCK 6.2% 41.4% 9.4% 8.5% 4.5% 15.5% 1.4x 1.1x 8.8x 7.0x Greif, Inc. GEF 6.5% 18.3% 9.7% 11.2% 4.2% 12.3% 1.0x 0.9x 8.1x 7.4x Myers Industries, Inc. MYE 5.8% 16.0% 8.2% 8.3% 2.3% 10.6% 1.4x 1.3x 13.2x 11.1x Newell Brands Inc. NWL 2.5% 16.5% 3.5% -4.7% -23.0% 13.6% 1.7x 1.7x 12.2x 10.0x Owens-Illinois, Inc. OI 3.5% 29.4% 5.2% 3.9% -6.2% 14.1% 1.2x 1.2x 8.5x 6.0x Silgan Holdings Inc. SLGN 6.0% 44.4% 8.0% 18.5% 25.4% 13.9% 1.3x 1.3x 9.7x 9.3x Tupperware Brands Corporation TUP 13.9% % 24.4% 0.1% 4.4% 17.9% 1.2x 1.3x 6.9x 6.5x Mean 6.2% -10.7% 9.1% 8.5% 5.5% 15.1% 1.5x 1.5x 10.1x 8.8x Median 5.9% 17.7% 8.1% 8.9% 4.4% 14.8% 1.4x 1.3x 9.3x 8.8x Paper Packaging Bemis Company, Inc. BMS 6.3% 7.2% 8.5% 1.1% -6.4% 13.6% 1.3x 1.3x 9.8x 9.5x Graphic Packaging Holding Company GPK 4.2% 17.4% 5.6% 11.4% 5.5% 15.5% 1.7x 1.4x 11.3x 8.2x Packaging Corporation of America PKG 10.2% 33.7% 13.3% 11.6% 14.7% 20.6% 2.0x 1.9x 9.7x 8.8x Sealed Air Corporation SEE 6.5% -79.6% 10.4% 7.6% 6.4% 17.0% 2.2x 2.1x 12.8x 11.0x Sonoco Products Company SON 6.1% 11.6% 8.8% 9.3% 5.3% 12.7% 1.3x 1.2x 10.0x 8.9x UFP Technologies, Inc. UFPT 4.6% 7.3% 5.2% 3.4% 3.0% 11.8% 1.8x 1.4x 15.4x N/A Mean 6.3% -0.4% 8.6% 7.4% 4.7% 15.2% 1.7x 1.6x 11.5x 9.3x Median 6.3% 9.5% 8.6% 8.5% 5.4% 14.5% 1.8x 1.4x 10.6x 8.9x Paper Products P. H. Glatfelter Company GLT 1.9% 0.3% 2.8% 1.0% 1.1% 8.0% 0.8x 0.7x 9.7x 7.2x Clearwater Paper Corporation CLW 3.0% 17.5% 4.1% -0.3% 4.0% 10.8% 1.9x 1.8x 9.8x 8.7x Schweitzer-Mauduit International, Inc. SWM 5.8% 7.7% 7.0% 17.7% 10.5% 19.5% 0.7x 0.7x 6.1x 6.5x Mean 3.6% 8.5% 4.6% 6.2% 5.2% 12.8% 1.1x 1.1x 8.5x 7.5x Median 3.0% 7.7% 4.1% 1.0% 4.0% 10.8% 0.8x 0.7x 9.7x 7.2x Notes: LTM (latest twelve months); NTM (next twelve months); (earnings before interest, taxes, depreciation and amortization); TEV (total enterprise value) Source: Capital IQ Houlihan Capital 3

4 Containers, Packaging and Paper Products Public Company LTM Equity Performance 30.00% 20.00% 10.00% 0.00% % % % Plastic, Metal and Glass Containers Paper Products S&P 500 Paper Packaging Dow Jones Industrial Average Note: The indices are derived from the equity performance of the previously listed companies. Source: Capital IQ Houlihan Capital 4

5 Recent M&A Activity in the Containers, Packaging and Paper Products Industries June 30, 2017 to June 30, 2018 (USD in millions) Close Date Target Acquirer Target Company Primary Industry Implied Enterprise Value 6/29/2018 The Waddington Group Inc. Novolex Holdings, Inc. Metal and Glass Containers $2, /9/2018 North America Consumer Packaging Business of International Graphic Packaging International, Inc. (nka:graphic Paper Packaging $1, /20/2018 Deltic Timber Corporation Potlatch Corporation (nka:potlatchdeltic Forest Products $1, /12/ Gilman Companies West Fraser, Inc. Forest Products $ /7/2018 Pacon Corporation Dixon Ticonderoga Company Paper Products $ /10/2018 Cox Industries, Inc. (nka:utility and Industrial Products unit of Koppers Inc. Forest Products $ /1/2018 Pellets Business in Greenwood, South Carolina of The Navigator Enviva JV Development Company, LLC Forest Products $ /9/ ,900 Acres Timberland Property Olympic Resource Management LLC, Investment Forest Products $ Arm; ORM Timber Fund IV (REIT) Inc. 12/31/2017 All Assets of New England Wood Pellet, LLC Lignetics of New England, Inc. Forest Products $ /3/2018 Ste-Aurelie Timberlands Gestion Solifor inc. Forest Products $ /10/2018 4,641 Acres of Timberland in South Carolina CatchMark Timber Trust, Inc. Forest Products $ /8/2018 Processing and Distribution Centre of Hampton Lumber Mills- Western Forest Products Inc. Forest Products $9.00 Washington, Inc. in Arlington, Washington 1/9/2018 Fulghum Fibres, Inc., Six Chip Mills N/A Forest Products $5.30 1/9/2018 Spinner Wood Products Universal Forest Products, Inc. Forest Products $2.94 6/19/2018 Healthcare Packaging, Performance Lidstock, Induction Seal and Tri-Seal Holdings, Inc. Metal and Glass Containers NA 6/12/2018 All the Assets of PFP, LLC Graphic Packaging International, LLC Paper Packaging NA 6/6/2018 Poly Pak America, Inc. Sigma Plastics Group, Inc. Paper Packaging NA 6/1/2018 Paper Mill Located in Pine Bluff, Arkansas of Mondi Group Twin Rivers Paper Company Inc. Paper Products NA 5/31/2018 Wisconsin Packaging Corporation Green Bay Packaging Inc. Paper Packaging NA 5/1/2018 Gateway Packaging Company LLC ProAmpac LLC Paper Packaging NA 5/1/2018 Hinkle Manufacturing, Inc. Orbis Corporation Metal and Glass Containers NA 4/30/2018 Multisorb Technologies, Inc. Filtration Group Corporation Metal and Glass Containers NA 4/30/2018 DeWied International, Inc. Oversea Casing Company, LLC Metal and Glass Containers NA 4/18/2018 Fontana Wood Products, Inc. and Expert Packaging Universal Forest Products, Inc. Forest Products NA 4/12/2018 Preferred Packaging and Crating Inc Liberty Diversified International, Inc. Paper Packaging NA 4/10/2018 Pactech Packaging LLC ProAmpac LLC Metal and Glass Containers NA 4/5/2018 Crane & Co., Inc. Mohawk Fine Papers, Inc. Paper Products NA 3/31/2018 Monte Package Company Bunzl plc Paper Packaging NA 3/31/2018 World Wide Packaging LLC Bain Capital Private Equity, LP Metal and Glass Containers NA 3/22/2018 Precision Pouches LLC epac, LLC Paper Packaging NA 3/20/2018 Thoro Packaging Inc. Autajon C.S. Paper Packaging NA 3/13/2018 Gamma2 Inc. Doskocil Manufacturing Company, Inc. Metal and Glass Containers NA 3/7/2018 Multifilm Packaging Corporation Transcontinental Inc. Metal and Glass Containers NA 3/5/2018 Certain Assets of Langdale Forest Products Co., Inc. Cox Industries, Inc. (nka:utility and Industrial Forest Products NA Products unit of Koppers) 2/16/2018 Vapor Group, Inc. SF Holdings LLC Metal and Glass Containers NA 2/14/2018 Fibre-Tec Partitions, LLC Lincoln Hill Holdings, LLC Paper Packaging NA 2/12/2018 Fleetwood-Fibre Packaging & Graphics, Inc. Golden West Packaging Group LLC Paper Packaging NA 2/8/ ,986 Acres Of Timberlands In Northwestern Wisconsin Hancock Timber Resource Group, Inc. Forest Products NA 2/8/2018 CPP International, LLC, Arts & Crafts Division Pacon Corporation Paper Products NA 2/5/2018 Chicago Aerosol, LLC And Granite Packaging, LLC Plz Aeroscience Corp. Metal and Glass Containers NA 2/5/2018 Pax Corrugated Products, Inc. Georgia-Pacific LLC Paper Packaging NA 1/31/2018 Package All Corp. TricorBraun, Inc. Metal and Glass Containers NA 1/31/2018 General Die And Die Cutting, Inc. C+C Packaging Paper Products NA 1/23/2018 North East Texas Pallet Inc. PalletOne, Inc. Paper Packaging NA 1/17/2018 PolyFirst Packaging, Inc. ProAmpac LLC Metal and Glass Containers NA 1/11/2018 Move Collective, LLC O2COOL, LLC Metal and Glass Containers NA 1/5/2018 NILCO, LLC U.S. LUMBER GROUP, LLC Forest Products NA 1/5/2018 Flavorseal LLC M&Q Holdings LLC Metal and Glass Containers NA 12/8/2017 Trimtec Systems, LTD Huntington Foam LLC Metal and Glass Containers NA 12/4/2017 Paper Systems, Incorporated N/A Paper Products NA 11/30/2017 SupplyOne, Inc. Wellspring Capital Management LLC Paper Packaging NA 11/2/2017 Spectrum Plastics Group AEA Investors LP Paper Packaging NA 11/2/2017 Alta Forest Products LLC ITOCHU International Inc. Paper Packaging NA Source: Capital IQ Houlihan Capital 5

6 S&P Capital IQ - Sector Last 3 Month Equity Performance 20.0% Change in Market Cap by S&P Capital IQ Sector 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% 3/31/2018 4/30/2018 5/31/2018 6/30/2018 Energy Materials Industrials Consumer Discretionary Healthcare Financials Information Technology Telecommunication Services Utilities Consumer Staples Note: The indices are derived from the equity performance of the S&P Capital IQ Sectors. Source: Capital IQ Houlihan Capital 6

7 M&A Deal Flow Statistics by S&P Capital IQ Sector 16,000 M&A Deal Count - Number of Transactions 14,000 12,000 10,000 8,000 6,000 7,735 7,544 8,953 7,561 8,024 8,265 8,970 7,120 6,788 6,011 6,954 6,702 5,967 5,258 6,410 5,471 5,064 4,000 2,000 4,989 5,391 5,700 5,147 5,062 5,134 5,244 4,543 4,297 4,033 4,197 4,316 3,697 3,347 3,788 3,667 3,335 0 $1,000 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q M&A Deals - USA & Canada M&A Deals - Rest of the World M&A Deal Count - Total Transaction Value ($ Billions) $900 $800 $700 $600 $500 $400 $372.8 $381.4 $462.7 $430.2 $512.6 $406.6 $440.3 $419.0 $268.0 $295.1 $445.7 $364.7 $336.2 $292.0 $335.7 $272.3 $353.3 $300 $200 $100 $251.0 $289.7 $450.7 $402.3 $385.2 $499.4 $408.0 $403.0 $375.6 $293.7 $363.7 $363.7 $338.9 $414.0 $346.2 $292.1 $442.5 $0 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Transaction Value - USA & Canada Transaction Value - Rest of World Houlihan Capital 7

8 M&A Deal Flow Statistics by S&P Capital IQ Sector Percentage Dollars Invested by Sector 2Q18 13% 2% 12% 10% 5% 9% 13% 19% 4% 4% 4% 5% Consumer Discretionary Consumer Staples Energy Financials Healthcare Industrials Information Technology Materials Real Estate Telecommunications Services Utilities Not Listed Houlihan Capital 8

9 About Us Houlihan Capital is a leading, solutions-driven valuation, financial advisory and boutique investment banking firm. We pride ourselves on being thought leaders in an ever-changing landscape. Houlihan Capital is SOC-compliant, a FINRA and SIPC member and committed to the highest levels of professional ethics and standards. Valuation & Financial Advisory We provide an array of services that include enterprise valuations, portfolio valuation, valuation of carried interest, transaction opinions, tax and financial reporting compliance, purchase price allocations, and a wide variety of consulting services through our Financial Advisory Group. Investment Banking Through our Investment Banking Group, we offer sell side/buy side advisory and capital raises. Through our Special Situations desk, we provide services that fit outside the archetypal verticals, including liquidity solutions, transactional advisory, and secondary market advisory and trading. Litigation Support Our team provides support for a wide variety of situations including commercial and shareholder disputes, derivatives and structured finance litigation, and fraudulent conveyance. For additional information about our industry expertise and services, visit: Andrew Smith asmith@houlihancapital.com Paul Clark pclark@houlihancapital.com Michael Norton mnorton@houlihancapital.com Monica Blocker mblocker@houlihancapital.com